Wife and I decided we were going to buy a new home. We sold ours 2 years ago and have been in our RV on the road for work. So we applied for a NFCU pre-approval. Because of our income they wanted it to go right to underwriting before issuing a pre-approval. we were approved for an amount financed under 500k
Long story short
We found a river front house, made offer and back and forth ended up at 365k.
Had inspections done, sent a list of needed repairs to sellers took a big fight and trying to excise our option period before they agreed to fix issues.
Had appraisal done, came in at 425k
Got home owners lined up
Now the problem:
Fema, house is advertised as cheap insurance and out of flood plane.
Turns out home builders "accidently" used the wrong Base Flood Elevation map for the house, either way according to their own paperwork house was built out of compliance when built in 1999.
Flood insurance was 19k!! per year
we called the bank informed them that it would be like 1800 a month and they needed to decline our loan based off that. They came back and said our DTI would still allow the house to go forward. DAMN!!
Realtor said she had ways out of contract for us and would take care of it.
NFCU wanted to do new credit pulls. I said No you have pulled our credit like 14 times during this process (everyone knows how pull happy they are)
Fought with them got a supervisor and management to approve use of old report (10 days old)
good to go have inspections done,
Ernest money cashed
option period expired
(keep in mind we were approved with no conditions)
Then 10 days from closing they email us
saying the new underwriter wants 3, 7 year old charge off taken care
I explained they have already fallen off my credit and that I would not mess with them because they are off my credit and way past SOL.
They forced us to pay these off even though I was willing at this point to allow a new credit pull. They said they know about them and want them paid before going forward.
Its been the biggest fight ever.
Now it looks like we will close on 8-26-14 now. So we get a new house but now we are broke! this cleaned out our savings completely.
So advise is if you have ANY bad mark on your credit go to another lender besides NFCU.
We have had them for like 10+ years, car loans, 200k rv loan, boats, toys... etc never late, never over limit on credit cards.
They said we dont qualify with 740+ scores for 5% down but they could do 0 or 10% down for us.
VA loan came back with like 7500 in orgination fees +1.5 points or (something like that) and they only back 25% of loan.
This has been a horrible experience. The loan officer and supervisor have seemed amazing but who ever is underwriting this conventional mortgage loan has been a nightmare and even escalating to way up level managers has done nothing. Your relationship with them dose not matter when it comes to a home loan.
If we weren't so deep in this process we would walk and go back with Chase for our home loan.
I understand everyones frustrations completely now, this is mentally exhausting !!!
Wow! Sorry to hear about your experience. It's ironic that they are so flexible with every lending product, except mortgages. When we purchased a couple of years ago we were using an FHA product. Although we were pre-approved with a lender I considered to be more conservative (as a condition of the offer they wanted a Chase approval even if we weren't going to use them), NFCU balked at giving me an FHA mortgage. At the time, my score wasn't fantastic, the mid was 660 and the high was 720 I believe but that was more than good enough for FHA coupled with the fact that I had a DTI ratio of about 20% including the proposed mortgage payment and no foreclosures or short sales or anything like that. The most recent delinquency was 4 years prior. We wanted to use Navy more as a show of loyalty to them and to consolidate our financial house, but at the first sign of trouble (and even though we were encouraged by our local Navy staff to let them ask for reconsideration, it was just obvious there would be more hassle to come), I cut my losses and started working with a mortgage broker who uses Flagstar. I sailed through the process with Flagstar, the conditions were so minor I can't even recall them for sure, but I think it was something like pulling my husband's credit (even though he wasn't on the loan, but would be on the title).
I would never have agreed to pay for items that were beyond the SOL and beyond the 7 year credit reporting period. I can't imagine how they believe that paying those debts would make you less likely to default on your mortgage. If anything you could argue that they created more risk for themselves by forcing you to exhaust reserves.
Again, I hate to hear that you've had such a stressful experience during what should be a really happy time. At least it's all behind you now.
From what I've read you need to be very well qualified for NFCU's mortgages. Just by reading past experiences here it seems that if your situation is very straightforward, and have good to excellent credit (this seems to be the most important), then things go smoothly... but if there are any complications with income or employment, or credit isn't so good, then that is where the nightmare stories come from.
Sorry for the late reply,
Here is the update as of right now, closing pushed back a week then pushed an extra day to Monday the 25th. we are pushing for friday the 22nd where it was supposed to be at. Wife is having problems with her job about moving her day off back on to their busiest day.
Paid all old collections.
Toyota said it was sold to collections, collections say they closed the file... According to our loan officer everything is cleared. I had one email from them on monday saying they would re-review all and be in touch in a day or two. Never heard back from them this week. So I guess tomorrow I will start rattling some cages and see whats going on.
So it appears that NFCU pulled a full-factual credit report, which will show the excluded items, if I understand correctly.
Some lenders pull full-factual, some don't. It's always best to ask upfront.
You could've gotten an approval from a different lender without all the hassle for the same rate.
this has been hell! we were supposed to close tomorrow at 9am. This morning my payroll clerk calls me and says NFCU wants my paycheck stubs ALL OF THEM from 1-2011 to current. She told the lady are you serious? it will take me 30 days to go through every pay roll file, pull (mine out) scan them and then I have to put them all back in our files. We have given you jan 2013 to current. Please check and call me back. she the girl from NFCU was studdering and didnt know what she was asking for.
I called our loan officer and processor. she said they had no idea what that was about but wanted the last 30 days of stubs, no biggy sent them over...
now today they call and say they need w2s. I told them you have our 4506T 78 days ago so you could pull our tax returns and rquest them from the IRS. She said we keep it on file but never use it for members with established history with us....
then I get a speach from anothe lady saying that they are an equal oppturinity lender and my relationship on the otherside of NFCU dosent matter on the home loan side.
they wanted to push closing back to monday. The client we work for said dont bother coming back if you change days off agin..... this sucks. So I told the bank if we cant close tomorrow cancel the deal and we are walking away. me and my wife are not losing 200k a year jobs over their crap!
she said I will let you know this afternoon.
I think i will not use NCFU for my house. Man i hope you come out on top with it, good luck.
That is such a shame. My experience with them was the absolute opposite. No stress at all. I only gave them 1 paystub and they checked with SS & IRS via my signing the disclosure docs. Closed in July. I really am sorry your experience has been so bad.
Take care and hope it all works out.
Remember you can always sign at home in front of a notary, the loan will just fund the following day.